The Next AI Crisis Is in the Boardroom

Why leaders need to get up to speed with AI before it’s too late  

AI is altering the way companies do business, from hiring and developing new products to customer service and logistics.  A lot of organizations are rushing to use these new tools, but there’s a deeper problem that most people aren’t talking about: the boardroom isn’t ready.

It’s not that the people on the board aren’t smart or experienced.  The speed at which AI is being used is faster than the speed at which rules are being made.  And that gap is putting businesses in actual danger.

Boards Are Not Keeping Up  

Deloitte says that 66% of board directors throughout the world said they don’t know anything about AI.  That means that two-thirds of the professionals who are supposed to help businesses deal with some of the biggest changes in technology in decades are not doing their jobs. (Source: Deloitte)

The National Association of Corporate Directors says that only 36% of boards have put in place any form of AI governance structure. This is even more telling.  Just 9% have given the go-ahead for a formal AI budget.  And less than 30% of them have put AI in their committee charters. (Source: NACD)

Boards know about AI, but just knowing about it won’t help when they have to make judgments about strategy, ethics, and investment.

Why This Gap Is Important 

It is the job of board members to ask the correct questions.  They keep an eye on things, set the company’s long-term goals, and act as its moral compass.

But when AI is involved, those duties become harder to do.

Boards now have to think about hazards that weren’t there a few years ago.  For example:

Can we trust the information that goes into our AI systems?

Is it possible that our automation could be unfair to some groups?

Do we know what occurs when AI does something wrong?

These are not questions about technology; they are questions about leadership.

It’s important for more than just IT departments and data scientists to comprehend AI.  The boardroom is where the most crucial AI questions should be raised.

When boards put off or avoid these talks, it doesn’t only slow down new ideas.  It puts the business in a lot of danger.  And not just theoretical risks, but genuine ones that hurt your reputation, your legal position, and your long-term plans.

This is what actually matters: 

1. Moral problems
   The facts and reasoning that AI systems are based on are what make them work.  It’s easy to miss hidden biases if executives don’t fully understand how these algorithms make choices.

   That might suggest that an automated hiring tool favors one group of people over another.  Or a chatbot for customer service that gives different answers depending on the tone or location.  These are big problems that could lead to discrimination, unjust treatment, or even legal problems.

   If boards don’t know how AI works, they can’t pose the correct moral questions either.  Are our AI models fair?  Clear?  Responsible?  No one else will ask these questions if you don’t.

2. Damage to Reputation
   AI failures don’t stay hidden.  When something goes wrong, the news spreads quickly, especially when it affects consumers or staff.

   Think of an AI tool that is available to the public that makes offensive stuff.  Or an algorithm that incorrectly stops some consumers from getting services.  These kinds of mistakes aren’t only embarrassing.  They make headlines, get people angry on social media, and lose trust that can take years to get back.

   Boards who don’t know much about AI might not even realize the risk to their reputation until it’s too late.  And when people stop trusting the system, it’s no longer merely a technological issue.  It’s a failure of leadership.

3. Mistakes in Strategy
   AI can help businesses flourish, but only if they use it correctly.  Boards may approve projects that don’t work out, waste resources, or send the firm in the wrong path if they don’t fully comprehend what the project can and can’t do.

   This could look like spending too much money on automation that doesn’t really make things more productive.  Or it could mean passing up an opportunity because no one on the board was sure enough to support it.

   It is the job of boards to look at the big picture.  That means knowing where AI fits into the company’s long-term plans and where it doesn’t.

Putting It All Together 

These aren’t problems that will go away on their own.  They need leaders that are interested, proactive, and willing to get involved.  When boards don’t learn about AI or think of it as a tech issue, they miss the ability to lead with confidence and clarity.

In today’s world, that’s not just a missed chance.  Your business can’t afford to take that chance.

Deloitte also discovered that only 14% of boards make AI a regular part of their meetings.  Even worse, about half of them never talk about it. Deloitte writes “Only 14% of respondents say their board discusses AI at every meeting, 25% say it’s on the agenda twice a year, and 16% say AI is discussed annually. Nearly half (45%) of respondents say AI hasn’t yet made it onto their board’s agenda at all”.  That kind of neglect can’t go on. (Source: Deloitte)

What Smart Boards Are Up To Now 

• Adding AI‑literate directors: Boards are actively seeking members with data‑science, machine‑learning or AI governance backgrounds. (Only 20% of S&P 500 boards had at least one director with AI expertise in 2024.) (Source: Harvard Law Corporate Governance Forum)
• Board education programmes: Regular workshops, trainings, real‑life AI scenarios and board briefings are becoming table stakes.
• Forming AI sub‑committees: Similar to audit or risk committees, some boards now dedicate governance structures to technology‑risk oversight—though still rare.

Some companies that anticipate ahead are making changes.  They’re starting to hire board members who have worked with AI before.  They are putting money into board education, hiring outside experts, and setting up technology oversight committees.

These businesses know that running AI isn’t only about knowing how to write code.  In a world where technology moves quickly, it’s important to be able to ask smart questions, evaluate what you think you know, and make judgments with confidence.

And it’s also about having the appropriate people there.

The New Type of Board Leader 

Boards are starting to search for a different kind of leader.  Someone who knows a lot about technology and how to lead people, develop trust, and see the larger picture.

Not all of the best board members today are seasoned executives.  They are strategic thinkers that are always interested in learning new things and know how technology may change a firm.

This is where companies like Boardsi come in.  We assist firms find board-ready candidates who have both experience and the ability to adapt.  We also help business leaders create personal brands that make them look like current, relevant leaders who can help firms deal with today’s problems.

This isn’t only about AI.  It’s About Being a Leader 

Bad code won’t trigger the next AI disaster.  There will be a lack of leaders. Because boards didn’t ask the proper questions or fight for the right frameworks.  From businesses that didn’t link innovation to governance.

To move forward in a responsible way, we need boards that are involved, know what’s going on, and are ready to lead in the age of AI.  If we don’t get the boardroom ready, the technology won’t work either.  It’s the individuals at the top.

Are you ready to make your board future-proof?

Written by Martin Rowinski.